The BHP Group Ltd (ASX: BHP) share price is pushing higher on Thursday morning.
In morning trade, the mining giant's shares are up 1% to $46.77.
Why is the BHP share price rising?
Investors have been buying the Big Australian's shares this morning after it announced an agreement to acquire copper miner OZ Minerals Limited (ASX: OZL).
According to the release, after a four-week exclusive due diligence period, the two parties have entered into a scheme implementation deed that will see BHP acquire 100% of OZL by way of a scheme of arrangement for a cash price of $28.25 per share.
This agreement is on the same terms as BHP's non-binding indicative proposal that was revealed on 18 November 2022.
The cash price of $28.25 per share equates to an enterprise value of $9.6 billion and represents a 49.3% premium to where OZ Minerals shares were trading prior to its initial proposal back on 5 August.
The scheme comes with a break fee of $95 million and allows for a dividend of up to $1.75 per share to be paid by OZ Minerals. However, the offer price will reduce in line with this dividend.
Unanimous support
The OZ Minerals board has unanimously recommended that its shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert's report.
Each OZ Minerals director intends to vote their shares in favour of the scheme, subject to the same conditions.
BHP's CEO, Mike Henry, was pleased with the news and believes the combination of the two miners will unlock opportunities that wouldn't be possible separately. He said:
The combination of BHP and OZL's assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP's strong balance sheet, capital discipline and commitment to sustainable development. We thank the OZL Board and management for their engagement through the due diligence process and look forward to working together to continue to take steps forward to complete the transaction.
